Semiconductor Consolidation Drives 1H15 M&A
In high-tech “disruptive” is a good thing. Disruption was the driving force behind the majority of the high-technology mergers and acquisitions in the first half of 2015, with acceleration in deal-making during Q2.
Corporate technology buyers pushed 2Q15 deals to a record $127.2 billon, which is higher than any quarter since 2000 and up 65 percent over 1Q15, according to EY’s latest report. In addition, the report finds that technology-enabled digital transformations disrupting multiple industries are in their infancy with more big-ticket transformative transactions anticipated.
Megadeals by corporate technology buyers fueled the biggest increase, as semiconductor and communications equipment companies – Avago/Broadcom; NXP/Freescale, Intel/Altera to name a few — positioned themselves for a foreseeable future of explosive growth in Internet of Things (IoT) devices, continued smart mobility expansion and the need for super-performing cloud data centers, according to EY.